An Arizona Mortgage Guru reader asks:
Any hope for expat in Holland? We have lived overseas 8 years and want to move to Summerlin, Vegas. We have no USA credit, no debt, a high income but in Euros, and a 10% down payment. Last mortgage was in the year 2000 ($2400/mo with Countrywide).
Dear Expat in Holland,
Fear not. Your situation is very salvageable, even in today’s mortgage market. Just from the information you have submitted, it appears the best option for you would be the FHA loan. If you are a veteran of the US military (any branch including National Guard), then you may also be eligible for a VA loan.
Both of these loan programs consider borrowers with no traditional credit. Lenders can make a loan decision based on “non-traditional” credit. For non-traditional credit you would need to establish that you have made twelve months of good payments on four “credit accounts”. These accounts could include your phone bill, car insurance, utility payments, rent etc. We would need a letter from four creditors stating that you have been in good standing with them for the past twelve months with NO late payments.
If you think you can obtain these documents then I see no problem with either FHA or VA approving your loan. Bear in mind you will need full time employment in the United States at the time the mortgage loan closes. A full employment/income verification will be required. Also be aware that FHA has loan size limits based on county, while the VA loan limit is the same as that of conforming loans ($417,000)
Here are two articles which you may find very useful as you learn more about FHA and VA loans:
As always feel free to contact me directly if you have any further questions.
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on Feb 5th, 2008 at 10:33 am
[...] Mortgage Loan Options for Americans Living Abroad, by Shailesh Ghimire. [...]
on Feb 15th, 2008 at 8:52 am
Thanks for the information and links. I have family in the same situation as this reader and I will pass it on.
on Mar 11th, 2008 at 2:01 am
Yeah !! I was in a similar situation like you. But now I have my own house at Texas. thanks to VA loan.
on Apr 1st, 2008 at 3:39 pm
Good information. My son is in the military and in the real estate business also and I will pass these sites on to him.